HR teams are assuming more strategic roles in the post-pandemic era. Hyperautomation is the norm, and modern HR functions leverage Artificial Intelligence (AI) and Natural Language Processing (NLP) to automate most manual administrative HR tasks. One of the most effective tools that employ both these techs and have the potential to disrupt the way HR services are delivered is ChatGPT.
In this blog we will deeply understand-
What is ChatGPT?
ChatGPT (Generative Pre-trained Transformer) is an AI-based language model. It mimics human conversation, and enterprises can use it for several NLP applications like chatbots. What makes ChatGPT stand out from other artificial intelligence chatbots is its ultra-realistic conversational experience, versatility, and improvisation skills.
ChatGPT was launched on November 30, 2022, by San Francisco-based OpenAI. It is currently available for free. However, OpenAI plans to monetize it in the future.
ChatGPT in HR | Use Cases
Unlike traditional AI chatbots, ChatGPT does not refer to the internet for responses. Instead, it learns from training datasets to generate responses. It works as a conversational app rather than a simple search engine. It makes ChatGPT particularly convenient and suitable for real-life HR use cases.
ChatGPT in Recruitment Management
ChatGPT is an excellent time-saver for busy hiring managers. Per a 2022 survey by Genius Consultants of 825+ organizations, over 44% of respondents indicated that AI-based chatbots are currently the preferred tool for initial interactions during the hiring process.
- Job Descriptions: You can type in the domain, designation, and minimum qualifications per your requirement. ChatGPT will provide detailed role descriptions that you can post on job portals and social media.
- Interview Questions: ChatGPT can offer detailed questionnaires you can use for interviews or skill assessment tests to judge candidates.
- Talent Pipeline Engagement: ChatGPT can create conversational emails to engage potential recruits and keep them up-to-date about upcoming opportunities as part of employer branding.
ChatGPT in Payroll Processing
ChatGPT can integrate with accounting and HR software to enhance payroll processing in the following ways,
- Employee Self-service: ChatGPT can answer questions regarding their pay, deductions, and other payroll-related issues. It can also send timely prompts for uploading necessary documentation for payroll processing.
- Data Validation: You can train ChatGPT to validate employee data, such as pay rates, tax calculations, and bank details to flag any discrepancies or inconsistencies.
- Audits: You can train ChatGPT to conduct regular audits of payroll data to identify any non-compliance regarding tax and labor regulations.
ChatGPT in Performance Reviews
ChatGPT can enhance communication at every stage of the performance management cycle as follows:
- Goal Setting: ChatGPT can draft goal templates aligned with employee roles, designations, and career plans. It can customize these goal plans based on employee and manager feedback.
- Performance Feedback: ChatGPT can track performance data to provide regular feedback to employees and answer any questions they may have regarding their performance.
ChatGPT for Employee Experience
ChatGPT can enhance the employee experience by adding a human-like touch to employee interactions with the HR departments.
- Virtual Assistance: ChatGPT can provide quick and easy access to information and support. For example, employees can ask questions about HR policies, benefits, or procedures, and ChatGPT will provide accurate and up-to-date information.
- Personalized Career Plans: ChatGPT can be integrated with learning and development platforms to provide employees with customized career plans. It can also suggest suitable learning resources and training opportunities aligned with their role and goals.
- Employee feedback: ChatGPT can integrate with employee feedback platforms to assist with employee surveys. It offers an interactive experience that helps keep employees engaged. It can also analyze unstructured feedback and convert it to structured data for capturing in your HRMS.
ChatGPT in Attendance & Leave Management
ChatGPT can be integrated with your attendance and leave management systems for the following functions:
- Leave Request Processing: ChatGPT can generate prompts that guide employees with submitting leave requests. It can also parse and interpret employee responses and convert them into structured data for your HRMS.
- Automated Time Tracking: ChatGPT integrates with time tracking systems that use fingerprints, facial recognition, or other biometric data to confirm an employee’s identity and automatically record their time worked.
- Fraud Detection: ChatGPT can generate and send automated notifications to management about suspicious attendance patterns and discrepancies in time sheets. These serve as starting points for fraud detection.
Query Prompts for ChatGPT
There are two scenarios wherein ChatGPT can answer queries by HR professionals,
#1. If you integrate ChatGPT with your enterprise HRMS – HR Team members can query enterprise-specific data using natural language text and get precise answers instantly. For example,
- How many employees have requested time off in the next month?
- What is the current breakdown of employees by department?
- How many employees got promoted in the last quarter?
- What is the current turnover rate for our company?
- How many employee complaints did we resolve in the previous quarter?
- What is the breakdown of employee benefits enrollment as of today?
- How many employees have requested flexible work arrangements?
- What is the current employee satisfaction score per the last employee survey?
Note: If you use HROne you won’t need this integration, we already give you a snapshot view of this and so much more in
#2. If you do not integrate ChatGPT with your enterprise HRMS – In this case, ChatGPT may provide information based on general knowledge. It may not be specific to your organization. Examples include,
- What are the current labor laws and tax regulations regarding our industry and location?
- What are the upcoming statutory deadlines for payroll compliance?
- List 20 questions for interviewing a candidate for a business analyst role.
- Draft a formal email to reach out to potential candidates for the CEO position of a financial services company.
- List the steps of the H1-B Visa process.
- Draft a job description for the role of an ERP sales manager.
- What are the best practices for creating a DEI policy for my organization?
- What are the different non-monetary benefits I can offer to my employees?
Benefits of ChatGPT in HR
#1. Higher HR Efficiency
HR Executives spend lesser time on repetitive tasks like informing employees about HR policies and creating recruitment content. They can focus on working as HR business partners (HRBPs) and contributing to strategic decisions.
#2. Lower Time-To-Fill
With automated content for role descriptions, interview questions, recruitment letters, and instant screening analysis of resumes, ChatGPT can help you fill vacancies faster for your organization.
#3. Improved Employee Experience
With instantaneous responses to employee queries and automated prompts for updates, employees do not need to follow up with the HR department on an ad-hoc basis. Per a 2021 Deloitte report, market-leading virtual HR assistants have led to a 33% reduction in calls to the HR department in retail companies.
#4. Data-Driven Decision-making
With the instant availability of business insights with natural language querying, it becomes easy for HR leaders to make strategic decisions. Convenience drives system adoption and data-driven company culture.
Limitations of ChatGPT
ChatGPT cannot understand or reason in the way humans do. It can offer suggestions based on data but has limited decision-making capability.
#1. Integration Requirements
You must integrate ChatGPT with your enterprise HR systems for accurate responses. ChatGPT may still not be able to handle complex HR tasks requiring specialized, enterprise-specific knowledge.
#2. Training Requirements
Training ChatGPT requires a large amount of data and computational resources, which can be costly. Any bias in the training data will reflect in the ChatGTP responses.
#3. Occasional Incorrect Results
ChatGPT may not always understand the context of a conversation, which can lead to inaccurate or irrelevant responses.
#4. Employee Data Security
As with any technology that handles sensitive employee information, you must take proper measures to ensure the security and privacy of the data.
Conclusion
ChatGPT is a giant leap compared to the existing technology powering virtual assistants. However, given that it is in its early stage of maturity, organizations must choose their use cases carefully and determine the appropriate level of human oversight. Also, an in-depth understanding of data training requirements and associated costs is necessary for HR functions to realize the potential that ChatGPT has.